Destination XL Tightens FY21 Sales Outlook Citing COVID-19 Resurgence

Destination XL Group Inc (NASDAQ:DXLG) reported $106.6 million in sales for the 9-week holiday sales period ended January 1, 2022, versus $78.4 million last year.
Comparable sales in the company's omni-channel retail business for the 9-week holiday period increased 11.4% compared to FY19.
The company has lowered its FY21 sales guidance to $500 million - $505 million (previous view $500.0 million - $510.0 million), below the consensus of $508.05 million.
Destination XL increased EPS outlook to $0.80 - $0.85 from the previous forecast of $0.72 - $0.80, above the consensus of $0.73.
"With the resurgence of COVID-19 infections from the Omicron variant, we are experiencing a softening of sales which we attribute to growing public concern which we have reflected in our updated guidance," said CEO Harvey Kanter.
"Supply chain disruptions still exist, however, they continue to slowly improve and we are continually monitoring and pivoting to ensure we have a better flow of inventory to meet our sales expectations," Kanter added.
The company plans to report its actual Q4 and FY21 financial results on March 17, 2022.
Price Action: DXLG shares are trading higher by 1.37% at $5.54 on the last check Monday.

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